Global lead short-term outlook December 2020

The strong performance of lead in November soon ran out of momentum this month, as it fell from leading the base metals complex to lagging well behind. Its price fell by 7.6% in December, dropping to $1957/t after spending a month above the $2000/t threshold. While this plummet did constitute something of an anticipated price correction, its extent still disappointed markets. However, although sentiment was turning against lead, many funds were still maintaining net long positions. But a rapid sell-off in the coming weeks cannot be discounted unless lead markets are once again buoyed by renewed supply tightness or pressure on demand, as covid infection rates soar again globally and dent optimism going into the New Year.